Newco Board Meeting 18th June 2013
New Horizons:
A Partnership Proposal NEWCO - JTC - COMMUNITAS An outline presentation to explain the advantages of developing a partnership relationship between Newco and JTC Furniture Group.
2013 OUR MISSION
“
We aim to make JTC Furniture Group one of the UK’s great companies and the natural choice for buyers of fitted furniture solutions who wish to develop value added relationships. We intend to be recognised as a market leader in our chosen sector of fitted furniture for Kitchens, Bedrooms and Bathrooms. These are our ambitions and our journey which has started with great determination.
Gordon Linton Chairman
“
OUR MOTIVATION
HERITAGE:
Founded in 1986 as a family business we now offer a team of directors who are also shareholders with a personal stake in our success. CAPABILITY:
We have worked with most local authorities, housing associations and major contractors and house builders. RELATIONSHIPS:
We are our most successful when develop a long term relationships with a customer based on a flexible approach and mutual understanding.
27 Years of Social Housing Experience
Since 2005 we have been working in partnership with Sharrow Indutries and Kier Construction in the supply of pre-engineered components for local assembly of kitchens at Sharrow to complete the Sheffield Decent Homes programme. This is a successful small business which has produced around 300,000 kitchen units since 2005, gives employment to around 40 local people. Sharrow Industries provides a modern production enviroment with more than half of the employees having disabilities or medical conditions ranging from auditory and visual impairment through to learning difficulties and epilepsy. We have offered individual employee programs of training, adaptation and support from community organisations to contribute to employee and business development on an ongoing basis with an investment of around £400,000 invested in premises and new machinery. This partnership has been highly successful for all participants and customers and we now have to opportunity to repeat that successful formula in partnership with Newco together with the support of the London Borough of Newham.
That is our motivation for grasping this enterprise opportunity – BECAUSE WE KNOW IT WORKS! We believe that our intentions are in accordance with the Major of Newham, Sir Robin Wales when he outlines his promise to Newham.
“In 2013/14, we will get 5,000 Newham residents into sustainable work via Workplace, the council’s employment and training service. We will also provide 1,500 Newham residents with access to skills training courses to give them the best chance of securing new and existing jobs and to turn their jobs into careers.” We certainly believe that we can support Newco in its mission to help local disabled and disadvantaged people back into the workplace through the provision of professional supported employment, training and guidance.
JTC
IN NUMBERS
27
YEARS OF EXPERIENCE
AN ACCENT ON INDIVIDUAL PERFORMANCE
HERITAGE Founded as a family business we now offer a team of directors who are also shareholders with a personal stake in our success EXPERIENCE We have worked with most major contractors, local authorities and housebuilders RELATIONSHIPS We are our most successful when develop a long term relationships with a customer based on flexible service
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SKILLED EMPLOYEES AT YOUR SERVICE
INVESTORS IN PEOPLE Our people are our greatest asset and as a major local employer they are dedicated to contributing to our success TEAM WORKING We are individuals working together to produce the most accurate and flexible responses HEALTH & SAFETY We protect all our people with the highest standards of training and awareness in the industry with low incidence rates
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c.ÂŁ
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TURNOVER FOR FINANCIAL SECURITY
NO EXTERNAL SHAREHOLDERS Our directors are the business shareholders with a direct stake in making sure our business is effective CASH After years of successful trading we have built up significant cash resources NO BANK LOANS We are not beholden to banks or venture capitalists for finance; we are our own boss!
JTC
IN NUMBERS
38
k
SQM PRODUCTION SPACE
2 FACTORIES CAPABILITY AND CAPACITY FOR ANY CONTRACT
MASS PRODUCTION We produce one kitchen every two minutes with a capacity of 28,000 cabinets a month we are ready for any size of contract SPECIALIST MANUFACTURE Our production capability allows for the manufacture of furniture for all contract markets STOCK The key to service is to hold high levels of stock and we enjoy around ÂŁ25m of products in our warehouse.
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KITCHEN CABINETS Our cabinets exceed the exacting standards of the most demanding buyers and have an exceptional specification
BATHROOM WALL PANELS We produce a range of bathroom wall panels which are a practical and popular replacement for ceramic tiling in the bathroom for showering and bathing areas.
k
CABINETS PER MONTH
BATHROOM CABINETS We offer many ranges of fitted bathroom furniture and satisfy the needs of some of the toughest customer groups in the UK SPECIALIST CABINETS Our standard ranges include the most comprehensive range of cabinets in the market
k
PANELS PER YEAR
KITCHEN SPLASHBACKS & UPSTANDS As a value added product which has terrific practical value we offer a range of kitchen spashbacks and upstands to match our worktops. These are more and more used as a speedy method of replacing the labour intensive installation of ceramic tiles.
What we do best! Our Expertise Covers Several Markets for Furniture JTC Furniture Group operates in several fitted furniture markets with a range of products including: kitchens, bedrooms and bathrooms, healthcare, education, washrooms, wall panelling, accommodation and bespoke furniture. With the latest software to develop and visualise products, we work closely with our customers to deliver added value solutions. Although we are a major player in these markets, our main focus is on cabinets for the kitchen, the origins of the business, and we have been supplying local authorities, housing associations and house builders with kitchen products since 1986. We are proud to have been associated with several major Decent Homes upgrading projects throughout the UK. A significant number of cabinets have been produced in conjunction with various partners and supplied in an efficient, practical and profitable manner which has demonstrated our approach to innovation in supply of product to satisfy the needs of the client.
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SOCIAL HOUSING specialist supplier, total service provision
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KBB high quality furniture kitchens, bedrooms & bathrooms
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ACCOMMODATION student, care homes MOD
EDUCATION nursery, primary and secondary schools
HEALTHCARE a complete range of Healthcare furniture
RECEPTION COUNTERS an accent on individualism & quality
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SOCIAL HOUSING dedicated partner
DESIGNATED PRODUCTS Social housing demands are tough on kitchens and our specification more than meets the demand with budget stretching products that show no compromise on quality yet offer the best in performance for the greatest value for money combination KITCHEN SURVEY To back up our promises our surveys are the most technically competent in the market today KITCHENS FOR ASSISTED LIVING Our MOBIflex range of kitchens are based on our most popular ranges and offer the same high level of product quality and designs. All the cabinets have been designed for practicality for use by those who have restrictions on mobility and include all the associated products which can assist these users including electrical drop down wall cabinets, adjustable worktop heights, wheel chair accessible base cabinets and side opening ovens amongst other adaptations.
A TOTAL SERVICE COMMITMENT
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KBB high quality furniture kitchens, bedrooms & bathrooms
MODA
BEDROOM FURNITURE
When working in the Home Interiors market it is important to be able to offer a complete range of products and that is why we have developed comprehensive Kitchen, Bedroom and Bathroom product ranges. Our three interiors brands are individualistic and represent the products designed specifically for the KBB market. With kitchens it is important that the latest design trends are followed and that our door and cabinet ranges are competitive with the best in Europe. Hence our approach with our Europa range which distils the best products from Germany and Italy.
EUROPA
KITCHEN FURNITURE
Moda incorporates ranges of wardrobe systems which also coordinates with the kitchen and bathroom furniture meaning that no only does a customer only have to go to one company for its complete fitted furniture requirement, it also means that the same high standards are maintained throughout the home. An area of increasing demand is the Bathroom, not only to hide away pipework and drainage but also to give ever smaller houses increasing opportunities for storage. Of course the bathroom also needs to be hygienic and so increasingly our easy to maintain wall panels are in demand as well as our easy to clean integrated bathroom furniture.
PERLA
BATHROOM FURNITURE
5 JTC Furniture Group has developed a range of fitted furniture designed and detailed specifically for the private development market. Europa combines the very best in European design with a service offer developed over 27 years experience of working with UK housebuilders in the design, manufacture and installation of kitchen, bedroom and bathroom furniture. Europa kitchen products offer the best available features of kitchens from retail kitchen markets which are sought after by house buying customers so that the value of any development is maximised. We offer a range of options which can build from the most affordable to the most luxurious kitchen to suit the housebuilder and their customer’s budget. We have taken the best in tried and tested high volume furniture manufacturing and combined the need for a flexible product offer for the private house builder to offer a complete package of fitted furniture including bathroom and bedroom furniture for high quality, fully coordinated furniture packages which are fully supported at the point of sale. Europa Kitchens offer you the final X factor ingredient to convert houses for sale into homes.
5 MODA
BEDROOM FURNITURE MODA is a range of bedroom furniture designed to complete the fitted furniture installation in any home; featuring fitted wardrobes of various types, interior fitments and all the associated accessories required to provide a compete turnkey installation package to the highest of installed standards. Our bedroom furniture has been carefully researched to provide the widest choice of decors and configurations in the market. From standard opening wardrobe doors to bi-folding and sliding systems you can be assured that our bedroom furniture is designed and constructed to the highest of specification. We offer the best in tried and tested high volume furniture manufacturing to give a comprehensive range of fitted interior products to suit a large number of developers and customers who require fitted furniture. This includes kitchen, bathroom and bedroom furniture for high quality, fully coordinated furniture packages which are fully supported. Moda offers you the opportunity to complete your home to the highest of finished standards.
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BATHROOM FURNITURE Perla Bathroom Furniture has been designed to be used in a wide variety of bathrooms using one of the widest range of cabinets in the market today. Integrate offers solutions for bathrooms, ensuites and cloakrooms with a standard depth range and a reduced depth slimline range. Bathroom installations are complete with an extensive range of Bathroom Wall Panels and other products designed to make Perla a bathroom to come home to. Incorporated in the designs are the latest features from flush plinths to soft close hinges and drawer systems. Available in a choice from high gloss white to a variety of woodgrain finshes with matching vanity tops and practical upstands.
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ACCOMMODATION student rooms, care home bedrooms, MOD
DESIGNATED PRODUCTS we have worked with the best accommodation providers in the UK across the market and have developed our ABODE Range of fast, easy to procure furniture which is inexpensive to maintain and designed for practical installation BESPOKE LAYOUTS we work with our customers to develop the optimal layout using a range of finishes to suit any installation, budget or timeframe
COMPLETE FURNITURE RANGE
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HEALTHCARE specialist furniture
SPECIALISED PRODUCTS We have developed comprehensive ranges of Healthcare Furniture to meet the specification and requirements of healthcare providers across the UK. Featuring Anti Microbial laminate surface finishes for continuous protection against HCAI & environmental cross contamination. COMPLIANCE We offer a full supply & fit service for HTM63, MDB, HTM71 products
A COMPLETE RANGE OF HEALTHCARE FURNITURE
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EDUCATION nursery, primary and secondary schools
STANDARD PRODUCTS Introducing our Socratic Ranges of education furniture we present specialist products in standard configurations to suit nursery, primary and secondary schools TURNKEY SERVICE As a complement to our standard products we can source a variety of auxilliary products to offer a complete turnkey service
A COMPLETE RANGE OF EDUCATION FURNITURE
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RECEPTION COUNTERS an accent on individualism & quality
BESPOKE JOINERY we manufacture counters to your specification using our standard elements meaning we can create a dramatic focal point without breaking the budget A WEALTH OF MATERIALS we have created counters from a wide variety of materials from real wood to metal, glass, lino, laminate, trespa
HIGHLY QUALIFIED AND SPECIALISED JOINERY WORKSHOP
PRODUCTION
OUR WORKING PROPOSAL JTC Furniture Group as a dedicated supplier of per-engineered components
MASS PRODUCTION FACTORY
SPECIALIST FACTORY
JTC Furniture Group would like to propose a method of working with Newco which has been tried, tested and proven a success with our operation at Sharrow Industries. This proposal is centered around the expertise JTC offers in the mass manufacture of pre-engineered timber components which can be assembled into completed kitchen cabinets. JTC also offers a fantastic opportunity in the sharing of its globally sourced components which are required to complete a kitchen such as hinges, handles, other hardware, worktops, splashbacks and many other associated parts.
GLOBALLY SOURCED COMPONENTS
PRE-ENGINEERED KITCHEN COMPONENTS
BATHROOM WALL PANELS
DISTRIBUTION
RETAIL & COMMERCE
WEB PRODUCTS
DEDICATED JTC SALESMAN
SHOWROOM NEWHAM COUNCIL
HOUSING ASSOCIATIONS LONG TERM CONTRACT SUPPLY
STORE PRIVATE LANDLORDS
OTHER LONDON BOROUGHS PRODUCTION OF COMPLETE KITCHEN CABINETS
ASSEMBLY AND KITCHEN PRODUCTION
LOCAL BUILDERS
MOBIFLEX ASSISTED LIVING PRODUCTS SPECIALIST
PLANNING FLOW OF FINANCE JTC Furniture Group as a dedicated supplier of per-engineered components
JTC Furniture Group would like to propose a method of working with Newco which has been tried, tested and proven a success with our operation at Sharrow Industries.
SETTING UP COST
JTC FURNITURE GROUP
This proposal is centered around the expertise JTC offers in the mass manufacture of pre-engineered timber components which can be assembled into completed kitchen cabinets.
KNOWLEDGE
EXTENDED CREDIT
JTC also offers a fantastic opportunity in the sharing of its globally sourced components which are required to complete a kitchen such as hinges, handles, other hardware, worktops, splashbacks and many other associated parts.
COMPONENT ??
MASS PRODUCTION FACTORY
PRE-ENGINEERED KITCHEN COMPONENTS
INVESTMENT
RETURN
PRODUCTION
ASSEMBLED KITCHENS AND OTHER PRODUCTS
NEWCO
MARKET
PROFIT
INVESTMENT
WHY THIS WILL SUCCEED Together we will be a new force in the market with this low risk proposition
UNIQUE ABILITIES OF JTC
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Efficient Bulk Manufacture Low Cost Global Procurement Established Product Range Production Experience Track Record of Success in this Venture Sales & Marketing Resources Financial Backing & Support Experts in Social Housing with 27 years Experience
UNIQUE ABILITIES OF NEWCO
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Availability of Workforce Reputation of Newco Support of Newham Council Excellent Premises and Facilities Local Knowledge and Contacts Local Fitting Capability
WHY SHOULD JTC GET INVOLVED
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Sales of Components Access to Local London Markets Local Fitting Capability Section 18 Contract Advantage
WHY SHOULD NEWCO GET INVOLVED
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Employment Continuity Growth Opportunity Skills Transfer Business Growth Opportunity No Cost Option for Business Development Franchise Style Product Range Opportunity for Range Extensions Investment in Image Development Supported Long Term Proposition with Vision
PROPOSED PROJECT STAGES
1 1 2 3 4 5 6 7 8
AGREEMENT TO TEST FEASIBILITY
Production Training Procedures Stock and Stock Control, storage and security IT systems required Personnel Issues Identified Sales & Marketing Report Database of Opportunities Marketing Ranges & Products Identified and Materials Produced Financial Technicalities, Legals, Compliance etc Agreement of Partnership Particulars
Application for Board Level Representation
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INTRODUCE PRODUCTION
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Place Components and Completed Stock to Aid Transition Commence Hands on Training Commence Sales and Promotions Recruitment Completed
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FULL PRODUCTION PLAN
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Full Scale Production Advertising & Promotion of Facility Sales Activity in Market Look at Efficiencies and Way Forward to Improved Working
Gain Production, Customer Service and Delivery Competence Introduce IT System and Reporting Regime
Board Representation JTC – Production Manager/Adviser JTC – Dedicated Sales Manager
Fully Integrated Company Ready for Competitive Action!
OUR SHARROW INDUSTRIES EXPERIENCE JTC Furniture Group has experience in supplying a formula of pre-engineered components for assembly into kitchen units which requires a mixture of skills easily achievable by male or female with impairments to sight, hearing or other physical or mental limitation. This was an extremely practical proposition for both JTC as a supplier; since we had the economies of scale in delivering components, local flexibility in cabinet
procurement with our customer benefiting (in addition to developing a high profile facility) from a lower overall cost whilst enjoying the full support from a mass production unit which could operate from a distance with the support of a locally active workshop where there was a mix of both components and completed kitchens. We understand how to make this type of joint venture work, having successfully set up such a facility as part of the Sheffield
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KITCHEN UNITS PRODUCED
19
m
TURNOVER OF KITCHEN PARTS
400
kk
LOCAL PEOPLE EMPLOYED
INVESTED IN PREMISES AND MACHINERY
City Council Decent Homes Programme in conjunction with the Kier Group called Sharrow Industries.
medical conditions ranging from auditory and visual impairment through to learning difficulties and epilepsy. Total turnover of kitchen parts to Sharrow has been in the region of £19m over the period.
This is a successful small business which has produced around 40,000 kitchen units since 2005 has given employment to around 40 local people. Sharrow Industries provides a modern production environment with more than half of the employees having disabilities or
Individual employee programs of training, adaptation and support from community organizations contribute to employee and business development on an ongoing basis with an investment of around £400,000 invested in premises and new machinery.
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